As per the previous Industrial Disputes Act of 1947, retrenchment compensation was payable to the retrenched or terminated worker upon fulfilling certain conditions, at 15 days' salary for every completed year of service. With the introduction of the Industrial Relations Code of 2020, is this provision still applicable, or have there been any changes to the above policy? Can any reader please clarify this for me?
Thank you.
From India, Bangalore
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1Thank you.
From India, Bangalore
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Dear Gopal,
The rate of retrenchment compensation under the IR Code, 2020 remains the same as that of the existing provisions of the IDA, 1947, but an enabling provision has been incorporated in the same section to revise it to the Government.
In addition, the employer is required to contribute to the Reskilling Fund constituted under the Code at 15 days' wages last drawn per every employee retrenched.
From India, Salem
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The rate of retrenchment compensation under the IR Code, 2020 remains the same as that of the existing provisions of the IDA, 1947, but an enabling provision has been incorporated in the same section to revise it to the Government.
In addition, the employer is required to contribute to the Reskilling Fund constituted under the Code at 15 days' wages last drawn per every employee retrenched.
From India, Salem
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